As a seasoned cryptocurrency trader with over five years of experience, I’ve seen my fair share of market trends and technical analysis signals. And based on the latest post by analyst Ali on X, it seems that Bitcoin is once again showing signs of potential trouble.
A cryptocurrency analyst has shared insights on the possibility of Bitcoin encountering price declines based on the formation of both a “death cross” and a TD “sell” signal.
Bitcoin Looking In Trouble As 12-Hour Chart Forms Two Bearish Signals
As an observer or analyst, I’ve noticed that in a recent post on X, I discussed two noteworthy developments in Bitcoin’s 12-hour chart. The initial signal is referred to as a “death cross.” This phenomenon materializes when the short-term moving average (I’ve been keeping an eye on this) drops below the long-term moving average.
The relationship between the 50-day and 100-day moving averages forms significant trend indicators. Traditionally, when the 50-day moving average falls below the 100-day moving average, this pattern is referred to as a “death cross.” This event has often predicted bearish market trends in the past, suggesting potential price declines following its confirmation.
The TD Sequential indicator, widely utilized for identifying potential peaks and valleys in an asset’s pricing, has recently signaled for cryptocurrencies.
As an observer or analyst, I would describe the TD Sequential indicator’s structure in this way: This technical tool consists of two distinct phases – the “setup” and the “countdown.” During the setup phase, an asset undergoes nine consecutive candles of the same polarity. Once this condition is met, it is suggested that a potential reversal may be imminent at the price level reached.
If the candles forming the setup are red, and the overall market trend is bullish, then a potential reversal would signify a selling opportunity. In simpler terms, you might consider going short if there’s a red candle formation in a bullish market.
After finishing the preparation stage, we move on to the countdown segment. During this phase, candles are tallied up to thirteen rather than nine as in the setup process. Following the conclusion of the countdown, it can be presumed that the commodity has possibly reached a new peak or trough.
I’ve examined the chart presented by Ali, which showcases the emergence of indicators for two distinct technical analysis patterns in Bitcoin’s 12-hour price trend.
In the graph, the price of Bitcoin during the past 12 hours formed a “death cross” when its 50-day moving average dropped below the 100-day moving average. Later, the TD Sequential indicator signaled a potential reversal by indicating a downturn in the market.
As an observer of the cryptocurrency market, I’ve noticed that the double bearish pattern emerging in Bitcoin (BTC) has set off a downtrend. Should BTC fail to maintain its current price above $63,300, prepare for potential drops toward $61,000 or even further down to $59,000, according to my analysis.
If the current price of the cryptocurrency were to decrease, a drop to the first target would represent a loss of approximately 4.6%. On the other hand, reaching the second target would imply a more significant decline of around 8%.
BTC Price
To date, Bitcoin has succeeded in avoiding dips below the predicted $63,300 mark set by the analyst, with its price hovering near $64,000.
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2024-04-26 00:04